Risk of United States losing its AAA credit rating is real

“After the most astounding and terrifying week in markets in a generation, when the whole ‘house of cards’ almost tumbled according to George Bush, . . . [t]here is now a serious risk of foreign investors balking at the scale of US financing needs (and certainly at anything like current yield levels), and the country losing its crucial AAA credit rating, as Japan did in 1998. After calling a dollar rally way back in June, I’m afraid it’s now well and truly over, and the fundamental outlook for US government bonds, already poor, has now become downright appalling. ”